Europe’s largest insurers say wildfire and heatwave damage is rising faster than insurance coverage, leaving governments, households and businesses to absorb a growing share of the financial hit. Executives from Zurich Insurance Group, Swiss Re and Munich Re told CNBC that the region remains underinsured for natural catastrophes, even as hotter summers and more destructive fires increase risks to infrastructure, healthcare systems, transport and agriculture. The warnings come after major blazes in France, Spain and Greece and amid estimates that wildfire and heatwave costs had already reached about 3.1 billion euros ($3.5 billion) by the end of July across five Eurozone countries most exposed to the fires, above the EU’s average 2.5 billion euro annual impact. Insurers say the core problem is a protection gap, meaning assets and economic activity are exposed but not adequately covered, even though pricing and prevention can improve insurability over time.